Store brands, brown bags and the non’trée
Store brands have come a long way, and they’re paying off for grocers. There are a myriad of reasons for the store-brand offensive. First, supermarkets reap higher gross profit margins on their own brands compared with name brands — about 8 to 10 percentage points higher, said Jim Hertel, a managing partner with food retailing consultant Willard Bishop.
Additionally, because private-label products are less expensive, a robust private-label program can improve a traditional grocer’s “price image” to cost-conscious shoppers, Hertel said.
“Consumers are worried about their financial state,” Hale said. “They’re worried about their long-term position in terms of where they’re working. … They’re looking for anything they can do to save money.”
Retailers also are putting a greater emphasis on their store brands, Hale said. They’re promoting the private labels more heavily and touting the quality of the products, he said.
“You have a lot more focus around private label than you’ve ever had in the U.S.,” Hale said.
So are Big K and Sam’s Choice colas ready to knock off Coke and Pepsi? Not exactly, but they could chip away at market share while the economy remains weak.
The strength of private labels varies greatly by category. Private label accounts for about 40 percent of dairy sales but just 1 percent of alcoholic beverages.
Brown-Bag It. Save about $187.50 by brown-bagging lunch during the month of December — that’s about enough to buy some of the hottest holiday gifts of the year! Turn holiday leftovers into gourmet lunches and steer clear of unnecessary spending. Make a midday feast by filling a roasted red pepper with leftover stuffing or sprinkle turkey and cheese inside a tortilla for a sizzling quesadilla. Try the new decorative Ziploc(R) holiday bags to pack some holiday cheer with your meal.
“Non’trée (pronounced “non-tray”) refers to the folks who order appetizers rather than a pricier entree – a popular practice in economic hard times. In fact, as the value of real estate plummets, the stock market totters and the jobless rate grows, diners are sharing meals, skipping dessert, opting to drown their sorrows in a glass of wine rather than ordering a whole bottle, or staying home altogether.
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